Misappropriation of client funds. Alleged activity occurred July 2009 to April 2016.

$980,000.00

FINRA

Respondent Droeg failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

Letter

Suspension

All capacities

Indefinite

Continues until required payment is made or discharged.

9/29/2023

Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Respondent Droeg is suspended on September 29, 2023 for failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

FINRA

Without admitting or denying the findings, Droeg consented to the sanction and to the entry of findings that he converted assets of a trust by using his authority as trustee to surrender a variable annuity owned by the trust and then transferring over $878,000 from the trust's bank account to his own bank accounts, a portion of which he distributed to the trust's beneficiaries and withdrew the remainder for personal use. The findings stated that the trust was created by its two beneficiaries, a senior, married couple with no familial relationship to Droeg. In accordance with the trust documents, Droeg had authority to invest the trust's assets and to establish and control bank accounts in the trust's name. Droeg initially invested the trust's assets in a variable annuity.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

all capacities

Indefinite

3/3/2022

UNITED PLANNERS' FINANCIAL SERVICES OF AMERICA A LIMITED PARTNER

Discharged

United Planners prohibits financial professionals from acting in the capacity as a trustee for clients who are not immediate family members. Mr. Droeg did not disclose he was named the trustee for a client's account prior to becoming affiliated with United Planners and continued to act as trustee after his affiliation. Additionally, United Planners prohibits financial professionals from creating and distributing fictitious statements to clients.

Customer alleged that from 2012-16 Registered Representative recommended unsuitably over-concentrated and illiquid investments in numerous variable annuities for several Profit Sharing Plans and incorrectly reported the values and performance of the securities resulting in excess distributions, unnecessary fees and poor performance. Date of Activity - 07/24/2012-11/18/2016

$250,067.09

$75,000.00

The Settlement was a total $75,000.00 with Woodbury paying $30,00.00, HBI paying $45,00.00. Registered representative met with his client on several occasions. All risks, including illiquidity risk, were fully disclosed and acknowledged in writing by the client. The investments were both appropriate and suitable given the clients objectives, risk tolerance and time horizon. We see no basis for these allegations.

ALLEGES UNSUITABLE RECOMMEDATIONS BASED ON RISK TOLERANCE AND AGE OF CLIENT.

$6,000.00

$18,043.79